How Preventive Maintenance Reduces Operational Costs in Steel Plants

In a steel plant, where production runs 24/7 and machinery operates under intense loads and extreme temperatures, unplanned downtime can be catastrophic.

Every hour of lost production due to equipment failure not only halts output but also increases energy waste, labor inefficiencies, and material scrap.

Preventive maintenance (PM) is a proven strategy to minimize these disruptions. By scheduling maintenance before equipment fails, steelmakers can extend machinery lifespan, improve safety, reduce repair costs, and keep production flowing smoothly.

More importantly, preventive maintenance is a cost-saving tool, not just a reliability program. It transforms maintenance from a reactive cost center into a proactive driver of profitability.

What is preventive maintenance?

Preventive maintenance involves regularly scheduled inspections, cleaning, part replacements, and system checks to ensure that equipment remains in optimal condition.

Key features include:

• Time-based maintenance: Tasks scheduled at fixed intervals (e.g. every 3 months)
• Usage-based maintenance: Triggered after a certain number of hours, cycles, or tons of steel produced
• Checklist-driven procedures: Standard tasks for each asset, based on OEM or plant-specific guidelines
• Documentation and follow-up: Records that build asset history and support continuous improvement

In steel manufacturing, PM is used across casting lines, furnaces, rolling mills, conveyors, motors, compressors, and support infrastructure.

Cost savings from preventive maintenance

1. Avoidance of emergency repairs

Emergency repairs often require expedited shipping of parts, overtime labor, and lost production. Preventive care reduces:

• Replacement costs
• Emergency service fees
• Premium part costs
• Disruption to shift schedules

2. Increased equipment uptime

A well-maintained rolling mill or furnace runs more reliably. This maximizes production capacity, reduces overtime, and lowers per-ton cost.

3. Extended asset life

Steel equipment is expensive. Proper maintenance delays the need for costly replacements and keeps older equipment functioning efficiently.

4. Reduced scrap and rework

Degraded machinery leads to dimensional errors, poor surface finish, or internal defects. Preventive maintenance helps maintain tight tolerances and consistent quality.

5. Energy efficiency gains

Friction, misalignment, and wear cause motors and hydraulic systems to consume more power. Regular tuning and lubrication reduce energy waste.

6. Fewer safety incidents

Faulty brakes, overheated bearings, or oil leaks can cause fires, injuries, or environmental spills. PM reduces risk and ensures compliance with regulations.

Key maintenance areas in a steel plant

Electric arc furnaces (EAFs)

• Electrode holder inspection
• Cable connections
• Cooling system check
• Furnace lining wear tracking
• Arc regulation system cleaning

Rolling mills

• Gearbox lubrication
• Roll alignment
• Backup bearing checks
• Hydraulic pressure monitoring
• Drive motor inspections

Continuous casting machines

• Mold cleaning
• Oscillation mechanisms
• Spray cooling system nozzles
• Guide rolls and sensors
• Torch cutter alignment

Conveyors and handling equipment

• Belt tensioning
• Pulley inspections
• Motor and gearbox oiling
• Safety sensor testing

Compressors and air systems

• Filter replacement
• Leak detection
• Pressure regulator calibration
• Drain valve functionality

Cooling and lubrication systems

• Pump condition
• Fluid levels and contamination
• Heat exchanger cleaning
• Flow rate validation

Setting up an effective preventive maintenance program

1. Inventory all critical assets

Use a CMMS (Computerized Maintenance Management System) to register all machines, serial numbers, locations, and maintenance needs.

2. Develop maintenance schedules

Use OEM recommendations and past failure data to create schedules. Include both calendar-based and usage-based triggers.

3. Standardize procedures

For each asset, define:

• Tools and materials required
• Safety precautions
• Step-by-step actions
• Visual aids or diagrams

4. Train maintenance staff

Ensure technicians follow procedures consistently. Cross-train to avoid knowledge gaps during absences.

5. Document every task

Track completed maintenance, issues found, parts replaced, and time spent. This builds a data set for trend analysis and budgeting.

6. Monitor performance

Use metrics like:

• Mean time between failures (MTBF)
• Planned vs. unplanned maintenance ratio
• Equipment availability
• Maintenance cost per ton

7. Continuously improve

Review failures, adjust schedules, and use failure mode and effects analysis (FMEA) to prevent recurrence.

Tools that support preventive maintenance

• CMMS platforms (e.g. IBM Maximo, SAP PM, Fiix): Manage work orders, asset histories, and spare parts
• Mobile maintenance apps: Allow technicians to receive instructions, record work, and upload photos in real time
• Sensor-based monitoring: Measure temperature, vibration, and pressure to support condition-based PM
• Digital SOPs: Provide consistent task instructions with visual guides
• Maintenance dashboards: Track KPIs and trigger alerts when PM is overdue

Real-world examples

Tata Steel

Tata uses a CMMS linked to real-time condition monitoring. Scheduled bearing replacements and oil analysis extended gearbox life in hot strip mills by 40%.

ArcelorMittal

Their EAFs in North America run on a predictive-preventive hybrid. Scheduled inspections prevented five major unplanned shutdowns in one year, saving an estimated $2 million.

JSW Steel

JSW integrated preventive maintenance and energy monitoring. When pumps ran out of spec, preventive adjustments avoided energy waste and mechanical wear.

POSCO

POSCO’s automated PM system recommends task intervals based on AI analysis of asset stress levels and ambient conditions—reducing redundant maintenance and focusing effort where it matters most.

Challenges and how to overcome them

Inconsistent execution

Solution: Use SOPs and mobile checklists. Audit randomly to ensure procedures are followed.

Backlog of overdue tasks

Solution: Prioritize based on risk and criticality. Streamline work orders and automate scheduling.

Data overload

Solution: Focus on critical assets first. Use CMMS filters and alerts to manage information flow.

Resource limitations

Solution: Train multi-skilled technicians. Outsource low-risk PM tasks. Stagger schedules to balance workload.

Resistance from operations

Solution: Involve production in planning. Schedule tasks during downtime or changeovers. Show how PM prevents delays and defects.

Frequently asked questions (FAQs)

How often should preventive maintenance be performed?
It depends on the asset, usage intensity, and environment. Start with OEM guidelines and refine based on plant data.

Is PM better than predictive maintenance (PdM)?
Both are complementary. PM is simpler and suitable for most assets. PdM adds value for critical or high-cost equipment.

Does preventive maintenance reduce labor costs?
Not always directly—but it prevents costly emergencies, reduces overtime, and improves planning efficiency.

Can small plants afford a PM program?
Yes. Even simple Excel-based or paper systems work. What matters is consistency and discipline.

Conclusion

Preventive maintenance is one of the most practical and proven ways to reduce operational costs in steel manufacturing. It protects assets, reduces downtime, improves safety, and boosts production efficiency.

By treating maintenance as a strategic investment—not just a repair function—steelmakers can create a more reliable, profitable, and future-ready operation.